[MYJiko]

When should a property establish a "Revenue" department?
When times are tough? Which dept do it work most with?
Finance or Sales or Marcomm?
Would it be a common fixture job in a hotel?
What are the main objectives of such a dept?

Alternately a "Controller" may also perform such a function.
Or is that not true at all?
Need to look up the JD for Revenue mgr. as well.
Of course post needs to be justified.

[aseangm]

I think there is quite a myriad of documentation on this subject however 2 points to clarify:
1. Revenue Management is not about the good or bad times, it is about optimising / maximising your revenue potential in your specific market and at no time should it be considered a temporary arrangement once the so-called bad times or good times roll over.
2. Revenue Management can never belong to the Finance Department and should never be confused with this. It is, in all the best scenarios, linked with S&M and in some hotels the Rev Management team decides rates that the S&M team can sell.

This decisions must come with the total commitment from the GM down. Revenue Management is everyone's responsibility but one department can make a huge difference. Since we initiated a comprehensive RM program in our hotel we have increased our ADR by over 28% and RevPar by 30%. We are now digging deeper into revenue management for F&B operations.

Best of luck with your efforts.

MYJiko, on 27 March 2011 - 01:58 PM, said:

When should a property establish a "Revenue" department?
When times are tough? Which dept do it work most with?
Finance or Sales or Marcomm?
Would it be a common fixture job in a hotel?
What are the main objectives of such a dept?

Alternately a "Controller" may also perform such a function.
Or is that not true at all?
Need to look up the JD for Revenue mgr. as well.
Of course post needs to be justified.

[CJK]

I think aseanGM got it right. RM belongs to S&M Division including Catering sales. As for F&B, DOFB or EAM/FB take ownership of obtaining all the data/stats and analyse from there on ways to maximise the revenue.

My 2cents.

[JayMariano]

don't forget the Reservations dept.

Reservations Dept. => STATISTICAL DATA (past occ, past booking patterns, reservations on hand, etc.. )

kisses
jay the young hotelier

[Petrus]

If the size of the property allows it, have a dedicated RM individual in charge that liases with reservations, S&M, F&B, C&B etc... However passing that onto S&M could be risky as there might be too much temptation to provide lower rates (for several reasons) to clients or potential clients without having had a careful analysis.

[EWIN]

Basically Reservations Manager should report to Director of Revenue in an organization.

JayMariano, on 07 April 2011 - 06:40 PM, said:

don't forget the Reservations dept.

Reservations Dept. => STATISTICAL DATA (past occ, past booking patterns, reservations on hand, etc.. )

kisses
jay the young hotelier

[NewRM]

well ,and simply i got a job not so ling time ago as revenue analysis
i discovered that the revenue (Real revenue as it should be like this
1- one on of your duty that u have to work as a cost control!!
2- Room revenue was NO thing comparison with the Controlling the Food and Beverage
well if applied what we mentioned above you will find out (banquet and Ball room) room already sold and rate is set up(rate fence , reservation Pace ,Forecasting....etc) now its time to control your income and revenue Room will not eat of drink but menu and store should be controlled--its freak to increase the revenue and lot of wholes still licking !!

Well R.M ( needs to set as follow or connected with Finance ,Sales &Marketing ,F.O,Reservation)
and someone called Revenue Analysis this person link all above mentioned dept. and collect all these data into some report and discuss it with all head dept.

it made into Power point presentation and excel sheet and discuss the W&S Weak & Strength Points
So this R.A (Revenue Analysis ) is one of the R.M Team ) but still revenue management work in different sections how you will set up the ROOM COST ( amenities,suppliers ,H.K even Loyalty programs )
its very nice to start your day checking the operations in details but we ONLY focus on the Room Revenue !! ignoring F&B ignoring the Daily Food Flash and % of Food cost not discover in the end that you will not reach your target or achieving the goals

Carnival Uk -Overseas Cruises -

[MYJiko]

Better late then never ...
Thanks guys for the all important inputs ...
Heve been away for a while ... Cheers

[AlfaScan74]

regarding the Topic and comments writing
I have some points to check with al of you
-Revenue can easily belong to F.C yes. as In P&O Cruses I got an chance to work with them they are very strong in the market as we are the only one in the market

-Revenue in their point of View simply based on ""closing the licking HOLES" starting from the Store "yes General store, F&B cost control, Room Revenue, Cash flow, Banquets, and any source of REVENUE and any affect revenue....

-we used excel applications, access and both made by VBA " just to calculate what you want ,What you need tp stress, your weakest points

HISTORY having your OWN history and set them up to be compared by the Current, and Last Year , is the core of the REVENUE Management Team.

simply creating some excel sheet ADDING button to export reports from PMS, setting the right formula to compare the data
it needs also your concern if it room revenue only as you have a constant f&b cost like 32% as in resorts. or concern based on Market events if you are downtown hotel, and banquets, ball room, conferences, and so on so fourth.

[aseangm]

Depending on the size of the property, the Revenue Manager could be a Director level (Excom) therefore reporting directly to the GM. In mid range properties (200-350) rooms, Rev Mgr may have a direct dotted line to the GM but reports daily to the DOSM. This role must never report to the FC or DOF, as this is a conflicting role to the fundamentals of Finance who are not responsible for generating revenues, rather they are there to ensure Policy / Procedures in that process are always maintained and taking risks, as a Rev Mgr must do (albeit calculated, and not alone, but with a team) is not the Finance Division / Dept JD. Think of the Rev Mgr as the Stock Market pit guy v the banker, what banker takes risks?

Do not underestimate the value of the Rev Team and ensure they constantly communicate with everyone - Revenue is everyone's responsibility.

AlfaScan74, on 14 January 2012 - 06:25 AM, said:

regarding the Topic and comments writing
I have some points to check with al of you
-Revenue can easily belong to F.C yes. as In P&O Cruses I got an chance to work with them they are very strong in the market as we are the only one in the market

-Revenue in their point of View simply based on ""closing the licking HOLES" starting from the Store "yes General store, F&B cost control, Room Revenue, Cash flow, Banquets, and any source of REVENUE and any affect revenue....

-we used excel applications, access and both made by VBA " just to calculate what you want ,What you need tp stress, your weakest points

HISTORY having your OWN history and set them up to be compared by the Current, and Last Year , is the core of the REVENUE Management Team.

simply creating some excel sheet ADDING button to export reports from PMS, setting the right formula to compare the data
it needs also your concern if it room revenue only as you have a constant f&b cost like 32% as in resorts. or concern based on Market events if you are downtown hotel, and banquets, ball room, conferences, and so on so fourth.

[MYJiko]

Thank you to all, once again for all feedback.
Even after 11 months since topic was raised.
Other than forum members and visitors continuing to contribute,
authors of threads should also check in regularly.